RBI Rationalises KYC Norms for Corporates for Forex
Transactions – Requires List of Officials with Names and Signatures Authorized
by MD/CFO
[RBI Circular No. 97 dated 20th
January 2014]
Sub: Know Your Customer (KYC)
norms/Anti-Money Laundering (AML) standards/ Combating the Financing of
Terrorism (CFT) Obligation of Authorised Persons under Prevention of Money
Laundering Act, (PMLA), 2002, as amended by Prevention of Money Laundering
(Amendment) Act, 2009 Money changing activities
Attention of Authorised Persons is invited to F-Part-II
of the Annex to the A.P. (Dir Series) Circular No. 17
[A.P. (FL/RL Series) Circular No. 04] dated November 27, 2009, as amended from
time to time.
2. Based on several representations received from
Authorised Money Changers (AMCs), regarding difficulties in submitting
Resolution of the Board of Directors for undertaking foreign exchange
transactions with an AMC and also Power of Attorney granted to its officials to
conduct forex transactions on behalf of the company,
it has been decided to rationalise the same. Accordingly, the requirement of
Resolution of the Board of Directors is being done away with and a corporate
may now submit to the AMC a list of officials with names and signatures authorized
by the Managing Director / Chief Financial Officer of the company to conduct forex transactions on its behalf. The amended instructions
are given in the Annex.
3. All the other instructions contained in the
A.P. (DIR Series) Circular No. 17 [A.P. (FL/RL Series) Circular No. 04] dated
November 27, 2009, as amended from time to time shall remain unchanged.
4. Authorised Persons may bring the contents of this circular to the
notice of their constituents concerned.
5. These guidelines are also applicable mutatis mutandis to all
agents/ franchisees of Authorised Persons and it will be the sole
responsibility of the franchisers to ensure that their agents / franchisees
also adhere to these guidelines.
6. Please advise your Principal Officer to acknowledge receipt of this
circular letter.
7. The directions contained in this Circular have been issued under
Section 10(4) and Section 11(1) of the Foreign Exchange Management Act, 1999
(42 of 1999)and also under the, Prevention of Money Laundering Act, (PMLA),
2002, as amended by Prevention of Money Laundering (Amendment) Act, 2009 and Prevention
of Money-Laundering (Maintenance of Records of the Nature and Value of
Transactions, the Procedure and Manner of Maintaining and Time for Furnishing
Information and Verification and Maintenance of Records of the Identity of the
Clients of the Banking Companies, Financial Institutions and Intermediaries)
Rules, 2005 as amended from time to time and are without prejudice to
permission/ approvals, if any, required under any other law.
Annex
[Annex to A.P. (DIR
Series) Circular No.97 dated January 20, 2014]
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Extant Guidelines |
Revised Guidelines |
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Features |
Documents |
Features |
Documents |
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Establishment of Business Relationship - Corporate |
Certified copy each of the following documents. (i) Certificate of incorporation (ii) Memorandum & Articles of Association (iii) Resolution of the Board of Directors for undertaking forex transactions with the AP (iv) Power of attorney granted to its managers, officers or employees to
conduct forex transactions on behalf of the
corporate and their identification. (v) PAN Card (vi) Telephone Bill |
Establishment of Business Relationship - Corporate |
Certified copy each of the following documents. (i) Certificate of incorporation (ii) Memorandum & Articles of Association (iii) List of officials with names, designation and signatures authorized
by the Managing Director / Chief Financial Officer of the company to conduct forex transactions on behalf of the company (iv) PAN Card (v) Telephone Bill Note: Corporate should invariably pay to AMCs towards
rupee leg of forex transactions through a
cheque/bank account of corporate irrespective of the amount of forex transaction |